Amazon Takes 156K SF in LA County
The IAC Commerce Center spans 155,700 square feet in Santa Clarita Valley
By Greg Cornfield June 18, 2020 1:55 pm
reprints
Amazon is again expanding with another regional distribution center in Los Angeles County — one of the top markets in the U.S. for industrial real estate.
The e-commerce king signed a lease agreement to take the 155,700-square-foot IAC Commerce Center, set to open in July. Newmark (NMRK) Knight Frank (NKF) announced the deal but did not share specific lease terms, and declined to confirm the name of the leasee.
However, sources familiar with the agreement told Commercial Observer that Amazon is taking the space. Amazon did not immediately return requests for comment.
IAC Commerce Center is a seven-building property owned by IAC Properties. It has approximately 1 million square feet of space over 116 acres, including two adjacent lots with 23 acres that will be used for parking for warehouse employees.
The project is at 28820 Chase Place in the city of Valencia in the Santa Clarita Valley in L.A. County, which features incentives like zero business license fees, gross receipts tax or payroll tax. It’s the second recent major lease deal for Amazon in the Santa Clarita Valley. Last month, the tech company leased approximately 100,000 square feet of space at one of the buildings nearby at the massive 252-acre Needham Ranch industrial park that’s currently under construction, according to media reports.
Property records show IAC acquired the property for its commerce center in 2015 for $11.2 million. The firm did not immediately return requests for comment.
Holly Schroeder, president and CEO of Santa Clarita Valley Economic Development Corporation said the region’s proximity to L.A makes it “ideal for e-commerce, which is a major growth sector in the economy right now.”
“We welcome the jobs and services the new tenant will provide,” she said in a statement.
NKF’s John DeGrinis, Jeff Abraham and Patrick DuRoss represented IAC Properties.
DeGrinis said e-commerce continues to be a major driver of economic activity, as consumers shift more purchases online, and DuRoss said last-mile distribution centers are a “critical component to the e-commerce machine” as consumers demand shorter delivery times.
“The tenant was also looking for adjacent land to accommodate a high parking requirement, which can be nearly impossible to find elsewhere in infill L.A.,” DeGrinis said.
